How QuickBooks Accounting Software Makes Tax Season Easy

Quickbooks Errors Solution

QuickBooks is the perfect product for your business because it offers you a variety of services and products. Moreover, it has software for every kind of industry and each type of task. With tax season upon you, it is time to get your financial documents together. As a business owner, this time is very stressful and burdensome, unless you own QuickBooks accounting software. The software practically does everything for you. With it, you no longer need to rush through collecting data and end up with missed assets and deductions. Purchasing QuickBooks accounting software is beneficial all year round.

Your Choices of QuickBooks Accounting Software

QuickBooks accounting software has many choices, but a few are more popular than others. For instance, Enterprise gives you three options: silver, gold, and platinum. It is considered the more powerful choice as it can track all your customers, inventory items, vendors, and much more.

First, the silver edition has many powerful features. Next, the gold edition has everything included in silver, plus enhanced payroll. Lastly, the platinum edition includes everything that the silver and gold include, with a few extras. For example, it also comes with advanced inventory and pricing.

Desktop Pro is considered the best small business accounting software. It shows you exactly where your business stands financially and much more. It also handles daily tasks quickly and efficiently. Desktop Pro Plus has all the same features as Desktop Pro with a some added specific features to complete daily business chores.

Software That Collects All Your Data

Waiting until the last minute to collect all your expense reports, financial records, and receipts, unfortunately, results in mistakes. Each of these software choices helps organize everything in one place. As a result, the software is easier for you to access and more user-friendly. You can handle all your expenses by tracking and paying bills through the software. It also gives you the option to sync with your online banking straight to QuickBooks. The Income Tracker feature will create a transaction report for your entire year or specific period. You will receive automated reports that you can choose to customize and schedule. Getting reports and answers have never been easier.

Eliminate Ghost Assets

QuickBooks accounting software is the perfect solution for ghost assets. When you have items that no longer have a value, but are still a fixed asset in your main account, these are considered ghost assets. For example, when an item is lost, stolen, or broken it no longer has any value for your business. Not properly recording these mishaps could lead to negative results in your taxes. Thankfully, using an inventory management software helps you avoid these ghost assets, and benefits your business every tax season.

All of the QuickBooks accounting software has tools to aid in keeping track of your inventory. Additionally, some of the software choices even include advanced inventory tracking and also provides inventory reporting. You can even customize these reports to include a valuation summary, assembly summary, and inventory stock by item. As a business owner, these powerful features will help you know exactly what you do and do not have without going through everything physically.

Don’t Forget Deductions

Even though you might know about certain deductions, you could still miss some that might have an impact on your taxes. The government uses deductions as a way to encourage spending in places that they want you to. Possible tax deduction examples include the use of vehicle expenses, contract labor, then rental of business property, supplies, utilities, and more. Unfortunately, many business owners forget about certain deductions, resulting in fewer tax breaks than deserved.

QuickBooks software can track your business with a click of a button. Information will be available in reports that are easy to use and organized by category. The income tracker will have all this information saved to reports and ready for you to view. It even covers all income-related transactions with an end-to-end view of everything. This will help you make minimal mistakes and help maximize either money back or less money to pay.

Accounting Software Can Benefit You Year-Round

Using accounting software has many benefits, and as a business owner, using it to track things like accounts, expenses, and payroll can save you valuable time. The benefits of accounting software are available during more than just tax season. They can benefit you throughout the whole year. The features that help assist with tracking accounts, expenses, and payroll only keep getting better with each update. All of QuickBooks software is getting faster and more powerful with each new edition.

This tax season does not have to be complicated, and you can still use an accountant. However, with QuickBooks software, the entire process will run smoother. You no longer feel rushed and stressed trying to gather everything because the software organizes the data into tax-friendly reports. Accounting software benefits your business all year long and makes every day easier.

10 Reasons To Use QuickBooks Online This Tax Season

1. 1099’s

QuickBooks Online helps you prepare and distribute 1099’s. The company offers step-by-step guides to getting this

2. W-2’s

If you are a QuickBooks Online Payroll customer, you can view and print W-2 forms for your employees. The software will keep track of your payroll taxes throughout the year to make filling out tax forms simpler.

3. E-file

QuickBooks Online Payroll users have the options of e-filing their federal and state income taxes. You can also sign up for e-pay, which makes completing your taxes that much simpler. Learn more about this feature here.

4. Sales Tax

Unlike its competitor, Xero, QuickBooks Online doesn’t have Sales Tax Returns support. However, there is an available report called Sales Tax Liability. This report shows all collected sales tax throughout the year and calculates what you owe to tax agencies. You just have to take care of actually filing and paying your Sales Tax Return.

5. Reports

Whether you do your own taxes or hire an accountant, you are going to need certain accounting reports (for more details see our recent post, How to Get the Most Out of Your Accounting Software This Tax Season). QuickBooks Online offers key reports such as Profit and Loss and Balance Sheets. Reports can be emailed, printed, or downloaded as .xls files.

6. Inventory

When you file taxes as a small business owner who manufactures or resells products, you have to value your inventory at the beginning and end of each tax year. Not only does QuickBooks Online offer an inventory feature (for Plus plan users only), but the software also provides an Inventory Valuation Detail report. This report shows your company’s assets and helps calculate your COGs for the year, which you need to know for certain tax forms.

7. Bank Reconciliation

Before you can even file taxes, you have to make sure your books are up to date (all expenses are in, all income is recorded properly, and everything is categorized correctly). QuickBooks Online makes this process quick and easy with automatic transaction matching and duplicate transaction detection.

8. Audit Log

We hope you never have to deal with an audit, but if you do, QuickBooks Online provides an audit log. This log thoroughly recounts “everything that has happened in your company file,” so no one is left questioning the validity of your company’s records.

9. Accountant Access

One of the coolest parts about QuickBooks Online is that you can invite up to two accountants to view your data for free. In the reports feature, there is even an Accountant Reports section. Happy accountant, happy life. That’s the saying, right?

10. Resource Center

The final plug for QuickBooks Online is their Resource Center. This feature offers dozens of tax articles. Some of these articles include “Calculating Sales Tax for Online Businesses,” “An Illustrated Guide to Tax Deductions,” and more.

Is QuickBooks Online Right For Me?

While QuickBooks Online’s tax tools aren’t as extensive as QuickBooks Pro or Xero, the software still offers great time-saving tax solutions.

If you are a current QuickBooks Online user, we hope that these ten features serve as tips to help you make the most of your software. For non-QuickBooks Online users, maybe it’s time to give QuickBooks Online a go. If you’re not convinced, read our full QuickBooks Online Review for more information or check out our 10 Reason to Use Xero This Tax Season article for an alternative.

Whatever you decide, remember accounting software is supposed to make your life easier, not harder— especially where taxes are concerned.

Learn QuickBooks to Simplify Tax Season and Save Money by Becoming Your Own Bookkeeper

Tax season is notoriously difficult for entrepreneurs. Whether you’re handling your tax filing yourself or you’re outsourcing to an accountant, there are a number of steps to take and forms to wrangle if you want to avoid penalties. If this season is wearing you out, you can make sure next year’s tax season is a whole lot easier by mastering accounting software QuickBooks. The Complete QuickBooks Desktop 2021 Certification Bundle is on sale now.

This 10-course bundle includes more than 50 hours of training taught by Robert Steele, a practicing Certified Public Accountant (CPA) who has been teaching accounting skills since 2009. This bundle takes a sequential approach to QuickBooks Desktop 2021, helping you go from a complete novice to a QuickBooks expert over time.

You’ll learn how to navigate the QuickBooks Desktop interface, understand different forms and reports, and learn how to create a new company file and input data. From there, you’ll cover a range of bookkeeping and accounting topics using the software that will be a significant asset come tax season. From bank reconciliations, budgeting, and invoicing to adjusting entries, using account numbers, and much more, you’ll learn how to improve your record-keeping and have a digital financial and business record that will make end-of-year filing significantly easier.

Get QuickBooks Ready For Tax Season in 7 Easy Steps

It’s that time of year when business owners get anxious and accountants get busy. We’re all preparing the April tax season!

If you’ve been keeping good records throughout the year, closing your books should just take a few hours. Then you can pass the file off to your CPA with confidence. If you haven’t been keeping good records… well, we’ll talk about that in a little bit.

Here are seven steps you can take to finish off your QuickBooks bookkeeping and be prepared for the new year.

Each of the seven steps is demonstrated in my 90-minute online class.

See this article in action!

Alicia recently taught a webinar about this very topic, and recorded it so you can see all these techniques in action yourself. See how to reconcile your bank accounts, using all Alicia’s favorite time-saving tips. Listen to actual business owners decide if today’s lunch was tax deductible or not. Watch Alicia run a variety of reports and customize them, including a discovery of which of her services made the most money last year (hint: it wasn’t her most popular ones!).

Watch Alicia’s Class

1. Reconcile your bank accounts.

Reconciling a bank account means comparing the transactions you have to the ones the bank has. Reconcile all your accounts: checking, savings, petty cash, credit cards, PayPal/Square, and loans. Ideally, reconciling should happen at the end of every single month, but completing the December reconciliation is the first step for ending the year.

As an aside, while I believe in “going green” in most areas of my life, I still have the bank send me statements at month’s end. That way I have a reminder to take this action. And, since I need the paper anyway for this process, it’s faster and easier than logging into my bank’s website and printing them out. Plus, I don’t have to pay for paper and ink!

When you receive your bank statement in the mail, go to BANKING > RECONCILE. Enter in the closing date of the statement (which may be different than the end of month), and the ending balance. Check off each matching transaction both on screen and on paper. When you’re done, you should have a $0 difference.

My Year-end QuickBooks Procedures online class includes a practical demonstration of a reconciliation, including some tips and tricks to make it easier!

Reconciling each bank account allows you to locate transactions that were entered twice, and entries the bank has that you don’t. By the time you’re done, all your transactions will be present and accounted for!

2. Make sure your transactions are categorized properly.

Just because your balance matches the bank, it doesn’t mean all the transactions were put in the right places.

Run a Profit and Loss report for Last Year. Click on each of the Income, Expense, and Cost of Goods amounts. Scan the list. Is each transaction supposed to be where it is? If not, click on the entry to open it, and change the category to the correct one. Here are some traps to look out for:

Personal Income and Expenses

Classify these using Equity accounts for Owner Distribution and Owner Contribution. LLCs should use “Member” or “Partner” instead of “Owner.” Corporations should use “Shareholder.”

Meals and Entertainment

Your morning Starbucks and your lunch do NOT count as Meals! Meals and Entertainment is reserved for business meetings, not for keeping you from getting hypoglycemic. If you are talking business with a colleague or client, that’s fine – just make notes on your receipt about who you were with and what you discussed. If you’re using QuickBooks Online, you can take a picture of your receipt and create the transaction on the spot to save data entry time back in the office!

Fuel and Auto Expenses

Your daily commute to work is not a business expense, unless you’re driving a company vehicle to job sites. Instead, fill up your gas tank and pay for your repairs with personal money, and keep a daily log of how many miles you drive every day for what purpose—there’s an app for that! Then talk to your CPA about taking a standard mileage deduction. This deduction is designed to reimburse you for your gas and car maintenance.

3. Take inventory.

If you sell products, this is a perfect time to adjust your inventory. QuickBooks has inventory reports you can print out to see what you’re supposed to have in stock. Take a physical count and compare the quantities. Depending on the version of QuickBooks you’re using, there may be an ADJUST INVENTORY tool to update your quantities. If you’re using QuickBooks Online, you can just enter an adjustment within the product itself, and QuickBooks will update the Inventory Asset valuation for you.

4. Depreciate your assets.

If you have large purchases in your fixed assets, you want to spread out the cost of the items over a few years so that your books don’t have big expense hits one year and nothing the next. Depreciation also adjusts for value reductions – your computer is worth less now than it was five years ago.

Ask your accountant to make these adjustments correctly in your QuickBooks file.

5. Analyze your business.

QuickBooks has somewhere between 20 and 100 reports available to you, depending on what version you’re using. Plus, they’re all customizable!

A general business guideline is the 80/20 rule, a proportion that runs through all your endeavors. 20% of your customers are responsible for 80% of your profit. 20% of your products or services make 80% of your revenue. 20% of your time makes 80% of your income. 20% of your staff does 80% of the work. You get the idea.

Start with your Profit and Loss report and your Balance Sheet. These are the two fundamental reports that show your Income/Expenses, and the state of your assets and liabilities.

Once you’ve perused these two reports, now go through ALL the reports available and look at your business in whole new ways. You’ll be surprised at what you’ll learn.

Once you know what type of customer is your best customer, find more like them next year. Once you know which of your services have the best profit margin, promote those services more. Use this analysis to make solid business decisions that will grow your company next year.

6. Close the books.

After your taxes have been submitted, use the Close the Books feature. Closing the books makes sure that your file matches what you submitted to the IRS. It prevents anyone from changing historical data without knowing what they’re doing.

In Preferences, set the date to 12/31, and put in a password. Now, when you try to change an entry before your current fiscal year, it will ask for a password first. That gives you a moment to make sure it’s a good idea before you do any damage!

7. Make a backup.

Even if you have a solid backup strategy, make a specific backup of your file as a year-end final copy. Label it with that fiscal year and put it in a special folder for collecting these master copies. Maybe burn a copy to a CD and put it in safe deposit box.

If you’re using QuickBooks Online, go to the Gear and choose Export. You must use Internet Explorer on a PC, even though in general Intuit recommends Chrome. Once you have this file, it can be restored to a desktop copy of QuickBooks, or uploaded into a new QuickBooks Online company for reference.

When and Where to Get Help

This is all well and good if you’ve been diligent about entering your sales receipts, invoices, and payments through the year, and recording all your expenses. But what if you haven’t been keeping up?

The short answer is that you have a lot to do. The good news is that most banks will allow you to download your entire list of transactions for the year, so all you have to is classify each one.

The longer answer is that just pulling in your bank feeds, especially for your income, doesn’t give you any detail for analyzing your business. You won’t be able to see what you sold to whom. You won’t be able to do any year-over-year reporting until the following year. If possible, at least recreate your sales history through Sales Receipts so that you have some level of detail moving forward.

If any of these seven steps were Greek to you, that’s a sign that a bookkeeper or CPA would be a great help to you and your company. I can sit down with you in person or by screenshare and walk you through this process.

On the other hand, you may decide that it’s time to start over fresh for the new year. I would be happy to help you customize a new QuickBooks file for your specific business and workflow.

QuickBooks Accounting Software Makes Tax Season Easy

QuickBooks is the world’s leading accounting & bookkeeping application for your business because it offers wide range of product as well as services. This financial software is seamless for every category of industry and each & every sort of task. This accounting software can almost do whatsoever associated with financial management.

As tax season is coming up, it is time to bring all the financial documents together. Being an entrepreneur or a business owner, this period is very hectic and tedious, if you don’t have QuickBooks financial application. Once you will purchase this accounting application for whole year, this will simply mean that you will no longer need to rush through gathering financial documents and end up with missed assets & deductions.

Having clean books and easy to understand financial statements, will lower your tax preparation costs and will give you much clearer understanding of the tax situation, not to mention the ability to plan and avoid surprises down the line. Through this post we have presented you benefits of QuickBooks accounting software which makes tax season easy.

Your Choices of Accounting Software Which is Suitable for your Business

QuickBooks Pro:

QB Desktop Pro also has fantastic attributes in it. It is the very best small business accounting software. QuickBooks Pro reveals you exactly where your organisation stands financially and far more. With the help of QuickBooks Pro software, you can manage your day-to-day tasks swiftly and efficiently.

QuickBooks Enterprise:

QuickBooks accounting software has actually included several versions, however a couple of are incredibly popular than other versions. For example, QuickBooks Enterprise solutions provides you 3 options:

  • Silver
  • Gold
  • And platinum edition.

QuickBooks Enterprise is a more powerful version as it can track all your accounting details, inventory items, vendors and much more.

  • QuickBooks silver edition has several powerful attributes.
  • The QuickBooks gold edition has everything consisted of in silver, plus improved payroll.
  • QuickBooks platinum version includes everything that the silver and also gold include, with a few bonus. As an example, it additionally comes with advanced inventory and also pricing.

QuickBooks Accounting Solutions – That Collects all Your Data

This software aids you arrange everything in one location. You do not need to fret to collect all your budget reports, financial records, and invoices. Consequently, the software is easier for you to access and even more user-friendly. You can deal with all your costs by tracking and paying expenses via the software.

It additionally offers you the option to sync with your online banking right to QuickBooks. The attribute called “Income Tracker” will aid you to produce a transaction record for your whole year or details duration. You will get automatic reports that you can select to personalize and also schedule. Obtaining reports and also solutions have never ever been simpler.

Eliminate Ghost Assets

A ghost asset is a fixed asset in general ledger which cannot be accounted because it is physically missing or rendered unusable. Not properly recording these collapses could lead to negative results in your taxes. QuickBooks accounting and inventory management software helps in avoiding these ghost assets.

This accounting software comes with tools which help in tracking your inventory along with advanced inventory tracking and inventory reporting. This report shows your company’s assets and helps calculate your COGs for the year, which you need to know for certain tax forms. Also you can customize these reports to include assembly summary, valuation summary and inventory reporting.

Don’t Forget Deductions

You may know a few deductions but less you remember you could forget some which may have an impact on your taxes. Government uses these deductions as a solution to encourage spending in places that they want you to. Example of possible tax deductions includes the use of the contract labor, vehicle expenses and then rental of business property, utilities, supplies and more. It’s sad but many business owners forget about certain deductions, resulting in less tax breaks than they deserve.

QuickBooks software can help you track your business with a click of a button. Reports containing information will now be easy to use and organized by category. The income-related transactions. By managing deductions you can ensure minimum mistakes and help maximize either many back or less money to pay.

Choose your suitable QuickBooks

QuickBooks accounting software offers many great choices but some are more popular than others. For example, Enterprise version offers you three options: silver, gold and platinum. It is the top-notch solution to track all your customers, vendors, inventory items and much more.

Platinum edition includes every feature of silver and gold including enhanced payroll, advanced inventory and pricing.

For small businesses, Desktop Pro is considered the best accounting software. It is true software showing exactly showing where your business stands financially and much more. It also helps in daily tasks efficiently and quickly. Desktop Pro Plus has the entire feature which Desktop Pro has plus some added specific features to complete daily business chores.

Organize all your data with the help of QuickBooks software

This software helps you in collect everything in one place. With QuickBooks you don’t have to worry to collect all your expense reports, receipts and financial records. This software is very to access and user-friendly. You can handle everything through the software like all your expenses by paying and tracking bills. It gives you an option to sync with your online baking straight to QuickBooks.

The tracker of income feature will help you create a transaction report for your entire year or for a specific year (based on your choice). You can choose customize and schedule feature to receive your automated reports. Easy way to get reports and answer is QuickBooks.

Benefits of using QuickBooks software

One of the most important aspects of using QuickBooks accounting software is that data loss can never happen, it automatically saves a backup of your company file in the main server, in case the software crashes. Just think of it that your company file is in wrong hands by accident, it can jeopardize all your business efforts. The abundance of confidential data, such as financial balance, account numbers, social security and employer identification numbers will be at huge risks.

Business owners must consider such accounting software which can describe security features in detail such as malware technology, anti-spyware and firewall protection.

I hope you found this information helpful. If you have any questions regarding this or need further information, you can simply dial our QuickBooks technical help service number .i.e ++1-888-300-3913. Our Intuit Certified ProAdvisors will look forward to your concerns and provide you a feasible solution for your queries.

Also Read :- How to Repair QuickBooks with QuickBooks Repair Tools?

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